The Middle East conflict has triggered a surge in prices for critical defence metals, with tungsten jumping nearly 40% and germanium rising almost 10% in just two weeks, according to Argus Media. The price spikes come as military spending accelerates globally and China restricts exports of key materials, creating a perfect storm for the niche metals market.

Defence companies face mounting pressure as low stockpiles and soaring costs threaten supply chains. Traders report that buyers are scrambling for availability rather than price, with some companies making unrealistic requests for large volumes of germanium that simply cannot be met. The market was already strained before the conflict, with China's export restrictions compounding supply challenges.

Western defence firms are racing to secure long-term access to critical materials and reduce dependence on Chinese suppliers. Companies like Thales are prioritizing supply chain security over cost concerns, while analysts note that defence spending represents only a small fraction of total demand for these metals. With governments restocking weapons amid escalating conflict, the pressure on these already tight markets is expected to intensify.